small and medium entreprises policy

7/29/2019 Small and Medium Entreprises Policy

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UNITED REPUBLIC OF TANZANIAMINISTRY OF INDUSTRY AND TRADE

SMALL AND MEDIUM ENTERPRISE

DEVELOPMENT POLICY

2002


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TABLE OF CONTENTS

PAGE

ABBREVIATIONS iiiFOREWORD v

1.0 INTRODUCTION . 1

2.0 SME DEVELOPMENT IN TANZANIA. 32.1 Definition ........... 32.2 Importance of Small and MediumEnterprises 42.3 Government Effort 52.4 Constraints faced by SMEs in Tanzania .. 8

3.0 RATIONALE FOR THE SME DEVELOPMENT POLICY ... 10

4.0 OBJECTIVES OF THE SME POLICY .... 11

4.1 Vision .. 114.2 Mission ... 11

4.3 Overall Objective . 114.4 Scope of the Policy 11

5.0 POLICIES AND STRATEGIES FOR DEVELOPMENT OF SME SECTOR 12

5.1 Legal and Regulatory Framework.. 125.2 Physical Infrastructure .. 13

5.3 Business Development Services.. .. 135.3.1 Entrepreneurship Development .... 155.3.2 Business Training 15

5.3.3 Information. 155.3.4 Technology . 155.3.5 Marketing .. 16

5.4 Access to Finance. 17

5.5 Institutional framework for SMEs Development 185.6 Rural Industrialisation 185.7 Cross Cutting Issues 19

5.7.1 Environment .. 19

5.7.2 Gender and the Disadvantaged Groups. 205.7.3 HIV-AIDS .. 20


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6.0 ROLES AND RESPONSIBILITIES UNDER THE SME DEVELOPMENT POLICY 22

6.1 Government . 22

6.1.1 Developmental Role . 226.1.2 Supervisory role -The Ministry of Industry and Trade . 22

6.2 Private Sector 236.3 Non Governmental Organizations (NGOs) 236.4 Development Partners 23

7.0 POLICY MONITORING AND EVALUATION . 24

Annex 25


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ACRONYMS and ABBREVIATIONS

BET - Board of External TradeBIS - Basic Industrial StrategyBoT - Bank of TanzaniaBOs - Business OrganisationsBDS - Business Development ServicesBEST - Business Environment Strengthening for TanzaniaBRELA - Business Registration and Licensing AgencyCAMARTEC - Centre for Agricultural Mechanization and Rural TechnologyCDTF - Community Development Trust FundCOSTECH - Tanzania Commission for Science and TechnologyCRDB - Co-operative and Rural Development BankCBE - Collage for Business EducationCTI - Confederation for Tanzanian Industries

COSOTA - Copyright Society of TanzaniaDFID - Department for International Development - United KingdomDIT - Dar-es-Salaam Institute of TechnologyEDC - Entrepreneurship Development CentreFAWETA - Federation of Associations of Women Entrepreneurs TanzaniaISOs - Institutional Support OrganisationsISP - Information Service ProvidersIPI - Institute of Promotion InnovationITDT - Institute for Technology Development and TransferMCM - Ministry of Cooperatives and MarketingMEDA - Mennonite Development AssociatesMFIs - Micro-finance InstitutionsMIT - Ministry of Industry and Trade

MSEs - Micro and Small EnterprisesMSME - Micro Small and Medium EnterprisesMoE - Ministry of EducationMoL - Ministry of LabourMoF - Ministry of FinanceMoH - Ministry of HealthMCDWC - Ministry of Community Development, Women and ChildrenNCPT - National Cleaner Production TanzaniaNEDF - National Entrepreneurship Development FundNEMC - National Environmental Management CommissionNGOs - Non-Governmental OrganisationsNIGP - National Income Generation ProgramNMB - National Micro-finance Bank

PSRC - Parastatal Sector Reform CommissionPTF - Presidential Trust FundPSI - Private Sector InitiativePRIDE - Promotion of Rural Initiatives and Development of EnterprisesRFF - Rural Finance FundROSCA - Rotating Savings and Credit AssociationsRALG - Regional Administration Local GovernmentSACCOS - Savings and Credit Co-operativesSADC - Southern Africa Development Community


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SIDO - Small Industries Development OrganisationSIDP - Sustainable Industrial Development Policy 1996--2020 (MIC)SMEs - Small and Medium EnterprisesTBS - Tanzania Bureau Standards

TCCIA - Tanzania Chamber of Commerce, Industries and AgricultureTEMDO - Tanzania Engineering and Manufacturing DesignTDTC - Technology Development and Transfer CentreTGT - Tanzania Gatsby TrustTIC - Tanzania Investment CentreTIRDO - Tanzania Industrial Research and Development OrganisationTISCO - Tanzania Industrial Studies and Consulting OrganisationTASISO - Tanzania Small Industries SocietyTAFOPA - Tanzania Food Processors AssociationTPSF - Tanzania Private Sector FoundationTRA - Tanzania Revenue AuthorityTsh - Tanzanian ShillingUCLAS - University Collage of Land and Architecture

UDSM - University of Dar-es-SalaamVETA - Vocational and Educational Training ActVPO - Vice President OfficeWDF - Women Development Fund

YDF - Youth Development Fund


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FOREWORD

It is now increasingly recognised that the Small and Medium Enterprises (SMEs)

play a crucial role in employment creation and income generation in Tanzania.

SMEs all over the world and in Tanzania in particular, can be easily established

since their requirements in terms of capital; technology, management and even

utilities are not as demanding as it is the case for large enterprises. These

enterprises can also be established in rural settings and thus add value to the

agro products and at the same time facilitate the dispersal of enterprises. Indeed

SMEs development is closely associated with more equitable distribution of

income and thus important as regards poverty alleviation. At the same time,

SMEs serve as a training ground for emerging entrepreneurs.

In Tanzania, the full potential of the SME sector has yet to be tapped due to the

existence of a number of constraints hampering the development of the sector.

They include: unfavourable legal and regulatory framework, undeveloped

infrastructure, poor business development services, limited access of SMEs to

finance, ineffective and poorly coordinated institutional support framework etc.

It is for this reason that this SME Development Policy was formulated so as to

address the constraints and to tap the full potential of the sector. Ad hoc andpiecemeal measures will then be replaced with sustainable, integrated and

coordinated interventions. This policy will serve as guidelines to all stakeholders

and thus stimulate new enterprises to be established and existing ones to grow

and become more competitive. The expected outcome is to have a significantly

increased contribution of the SME sector to economic development of Tanzania.

The policy preparation process was basically participatory. Between 1998 and

mid 2001, several zonal workshops were held to discuss the status of the sector

and to lay down strategies for boosting the development of the sector. Based on

the inputs received, a draft policy document was prepared and again discussed

by stakeholders in zonal workshops held at Dodoma, Mbeya, Mwanza, Arusha,

Kibaha and Dar-es-Salaam. The Commonwealth Secretariat, United Nations

Industrial Development Organisation (UNIDO), DFID and USAID did offer

assistance in the formulation of this policy. Let me take this opportunity to


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extend my sincere appreciation to the above mentioned workshop participants

and our development partners and to all others who facilitated the preparation

of this policy. May I also take this opportunity to reiterate the Governments

commitment towards continued improvement of the enabling environment for

SMEs development. Just as participatory approach was followed in the

preparation of this policy, public- private partnership will be ensured during the

implementation as well as monitoring and evaluation of the various

interventions. The success of this policy framework relies to a great extent on

the cooperation of all stakeholders. Let me therefore take this opportunity to

invite all stakeholders to play their part in revamping this sector.

We do consider the SME Development Policy as a challenge to all and indeed a

noble vehicle of facilitating the attainment of the objectives of the National

Vision 2025. In deed, as Mwalimu Julius Nyerere once said: It can be done,

play your part.

Hon. Dr. Juma Ngasongwa MP.

Minister for Industry and Trade

November 2002


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CHAPTER 1

INTRODUCTION

1. The Tanzania Development Vision foresees that by the year 2025, Tanzania should

have created a strong, diversified, resilient and competitive economy, which can effectively

cope with the challenges of development and, which can also easily and confidently adapt

to the changing market and technological conditions in the regional and global economy.

The challenge is therefore to mobilise human and other resources towards that goal.

2. Economic Reform Programmes implemented by the Tanzanian Government have been

based on the philosophy that Tanzania is committed to a market economy whereby the

private sector will take the lead in creating incomes, employment and growth. On the

other hand, the State will be a producer of public goods, play a regulatory role to level the

playing field and create conducive environment for the private sector to take the lead in

driving economic growth. This philosophy is evident in almost all policy statements made

since 1986 and in particular after 1996. The private sector has started playing an ever-

increasing role in creating incomes and employment. Small and Medium Enterprises

(SMEs) account for a large share of the enterprises active in Tanzania. In fact Small and

Medium Enterprises are the emerging private sector and do form the base for private

sector-led growth.

3. SMEs, important as they are to the economy, have been facing a number of problems

despite the on-going reform programmes. This is due to a number of factors, one of which

is a persistent culture that has not recognised the value of entrepreneurial initiative in

improving the lives of the people. Other factors include complex, bureaucratic and costly

legal, regulatory and administrative environment where SMEs are at a greater

disadvantage than their counterparts that are larger in size. The high cost of compliance

to regulations may discourage potential entrepreneurs from formally setting up their

businesses, while driving some existing enterprises out of business and those working for

them into unemployment. Also due to insufficient competition and inadequate information

on the credit markets of Tanzania, banks are discouraged and not willing to lend to SMEs.

Legislation and regulation on collateral exclude movable assets as mortgages, thereby

putting smaller businesses that own more of these assets into a disadvantaged position

vis--vis their larger business counterparts. SMEs have lower demand for business


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development services such as training, counseling, advising and consultancy due to cost

considerations and lack of knowledge about the benefits of external services in improving

competitiveness.

4. In the course of implementing the economic reforms the government has put in place a

number of strategies and programmes aiming at addressing some of the major constraints.

Such programmes and strategies include: - Rural Development Strategy, Agricultural

Sector Development Strategy, Strategic Trade Policy, BEST Programme, Micro-finance

Policy and Poverty Alleviation Strategies. To complement these and other existing

initiatives, this SME Development Policy shall ensure that SME related components are

adequately implemented, harmonized and coordinated.

5. Strategies for implementing the SME development policy focus on three main areas,

namely, the creation of an enabling business environment, developing of financial and

non-financial services and putting in place supportive institutional infrastructure. The SME

Policy takes into account the special constraints and opportunities faced by this sector

and aims at strengthening institutions which will address these constraints and maximise

exploitation of the opportunities.


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CHAPTER 2

SME DEVELOPMENT IN TANZANIA

6. SMEs all over in the world are known to play a major role in social economy

development. This is apparently the case of Tanzania, where SMEs contribute

significantly to employment creation, income generation and stimulation of growth in both

urban and rural areas.

2.1 Definition

7. The SMEs nomenclature is used to mean micro, small and medium enterprises. It is

sometimes referred to as micro, small and medium enterprises (MSMEs). The SMEs

cover non-farm economic activities mainly manufacturing, mining, commerce and services.

There is no universally accepted definition of SME. Different countries use various

measures of size depending on their level of development. The commonly used yardsticks

are total number of employees, total investment and sales turnover. In the context of

Tanzania, micro enterprises are those engaging up to 4 people, in most cases family

members or employing capital amounting up to Tshs.5.0 million. The majority of micro

enterprises fall under the informal sector. Small enterprises are mostly formalised

undertakings engaging between 5 and 49 employees or with capital investment from

Tshs.5 million to Tshs.200 million. Medium enterprises employ between 50 and 99 people

or use capital investment from Tshs.200 million to Tshs.800 million. This is illustrated in

the table below:

CATEGORIES OF SMEs IN TANZANIA

Category Employees

Capital Investment

in Machinery (Tshs.)

Micro enterprise 1 4 Up to 5 mil.

Small enterprise 5 49 Above 5 mil. to 200 mil.

Medium enterprise 50 99 Above 200mil.to 800 mil.

Large enterprise 100 + Above 800 mil.


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N.B. In the event of an enterprise falling under more than one category, then the level of

investment will be the deciding factor.

2.2 Importance of Small and Medium Enterprises

8. It is estimated that about a third of the GDP originates from the SME sector. According

to the Informal Sector Survey of 1991, micro enterprises operating in the informal sector

alone consisted of more than 1.7 million businesses engaging about 3 million persons, that

was, about 20% of the Tanzanian labour force. Though data on the SME sector are rather

sketchy and unreliable, it is reflected already in the above data that SME sector plays a

crucial role in the economy.

9. Since SMEs tend to be labour-intensive, they create employment at relatively low

levels of investment per job created. At present, unemployment is a significant problem

that Tanzania has to deal with. Estimates show that there are about 700,000 new entrants

into the labour force every year. About 500,000 of these are school leavers with few

marketable skills. The public sector employs only about 40,000 of the new entrants into

the labour market, leaving about 660,000 to join the unemployed or the underemployed

reserve. Most of these persons end up in the SME sector, and especially in the informal

sector. Given that situation and the fact that Tanzania is characterised by low rate of

capital formation, SMEs are the best option to address this problem.

10. SMEs tend to be more effective in the utilisation of local resources using simple and

affordable technology. SMEs play a fundamental role in utilising and adding value to local

resources. In addition, development of SMEs facilitates distribution of economic activities

within the economy and thus fosters equitable income distribution. Furthermore, SMEs

technologies are easier to acquire, transfer and adopt. Also, SMEs are better positioned

to satisfy limited demands brought about by small and localised markets due to their lower

overheads and fixed costs. Moreover, SME owners tend to show greater resilience in the

face of recessions by holding on to their businesses, as they are prepared to temporarily

accept lower compensation.


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11. Through business linkages, partnerships and subcontracting relationships, SMEs have

great potential to complement large industries requirements. A strong and productive

industrial structure can only be achieved where SMEs and large enterprises not only co-

exist but also function in a symbiotic relationship. However, the linkages between SMEs

and large enterprises are very weak in Tanzania. SME development Policy, therefore,

creates the potential for enhancing linkages within the economy. In addition, SMEs serve

as a training ground for entrepreneurship and managerial development and enable

motivated individuals to find new avenues for investment and expanding their operations.

12. There are also opportunities indicating a bright future for SME sector development in

Tanzania. This includes the various on-going reforms that are oriented towards private

sector development and, thus, lay the ground for SMEs development. In addition, the

recognition of SME sector that it has higher potential for employment generation per

capital invested attracts key actors to support SME development programmes. Since SME

development does contribute significantly to poverty alleviation, resources earmarked for

poverty alleviation will also be availed to the SME sector.

13. Various initiatives towards improving the infrastructures and especially roads do

provide an added opportunity for SME development. Furthermore, there are several on-

going schemes aimed at strengthening SME service providers such as Small Industries

Development Organisation (SIDO), Vocational Education Training Authority (VETA), Micro

Finance Bank (NMB) and various Industrial Support Organisations. These interventions

do provide opportunities for growth of the SME sector.

14. Given the fact that Tanzania is endowed with abundant natural resources, the creation

of enabling business environment will facilitate exploitation of these resources through

SMEs. This is again an opportunity for SMEs development.

2.3 Government Efforts

15. In recognition of the importance of SME sector, the Government has continued to

design and implement a number of policies and programmes supportive to the

development of the sector.


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2.3.1 Policy Development

16.Tanzania Development Vision 2025 seeks to transform from a low productivity

agricultural economy to semi-industrialised one lead by modernised and highly productive

agricultural activities which are buttressed by supportive industrial and service activities

through actively mobilisation of people and other resources towards the achievement of

shared goals. In the Poverty Reduction Strategy, the Government has decided to promote

private sector participation including Small and Medium Enterprises.

17. The Sustainable Industrial Development Policy - SIDP (1996 - 2020) places specific

emphasis on promotion of small and medium industries through the following measures:

supporting existing and new promotion institutions, simplification of taxation, licensing and

registration of SMEs and improve access to financial services. In addition, SIDP

encourages informal sector businesses to grow and be formalised. Furthermore, the

policy identifies measures to enable indigenous entrepreneurs, women, youth and people

with disabilities to take part in economic activities.

18. The National Micro Finance Policy covers the provision of financial services to small

and micro enterprises in rural areas as well as in the urban sector that are engaged in all

types of legal economic activities. Furthermore the Agricultural and Livestock Policy is

aimed at the development of agricultural and livestock activities that are performed by both

small farmers and livestock keepers. The priority is given to resources-based enterprises

particularly activities that add value to agricultural products. Nevertheless, agriculture is

still the backbone of our economy. It contributes more than 50% of the countrys GDP and

accounts for about 60% of the countrys foreign earnings.

20. The Minerals Policy of Tanzania identifies the artisanal and small scale mining

operations as a major target group to be promoted through improved access to finance

and availability of tools, equipment and consumables, supportive extension services,

simplified licensing and enhanced marketing opportunities. The National Employment

Policy recognises that the private sector including SMEs is the major source of

employment in Tanzania and outlines policies that will contribute to the creation of an

enabling environment for private sector development.


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21. There are also a number of government policies already in place aimed at facilitating

growth of the economy, which have a bearing on the development of the SME sector.

These include: Gender and Women Development Policy, Cooperative Development

Policy, the National Energy Policy and the National Environmental Policy and Rural

Development Strategy. Central to all these policies, is a creation of an enabling

environment, building of a robust private sector and articulation of strategies that will

create a sustainable growth. A number of institutions, both public and private were

established to implement and coordinate various programmes arising from these policies.

Furthermore, the government has undertaken various measures aimed at creating an

enabling environment to enhance enterprise development. These include, among others,

mantaining macro-economic stability; review of tax regime; simplification of licensing

procedures; implementing a programme on Business Environment Strengthening for

Tanzania- BEST and implementation of a Competition Policy.

2.3.2 Institutions

The Institutions and programmes established in support of the SME sector in Tanzania

include:-

2.3.2.1 Small Industries Development Organisation-SIDO

22. The first major attempt to promote the small industries sector in Tanzania was

undertaken in 1966 when the National Small Industries Corporation (NSIC) was formed

under the National Development Corporation (NDC). The NSIC set up small industrial

clusters, which were basically training cum production workshops. Thereafter, the Small

Industries Development Organization (SIDO) was established in 1973 by Act of Parliament

to plan, coordinate, promote and offer every form of service to small industries.

23. SIDO remains the main government arm for promoting SMEs in the country.

Some of the measures employed in the process included:- the construction of 16 industrial

estates with more than 140 sheds at regional headquarters; the establishment of 10

training-cum-production centres that offered simple rural based technologies; introduction


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of hire purchase programs through which more than 2000 entrepreneurs were assisted

with machines and working tools; and setting up of regional extension services offices that

rendered advice on setting up of new industries, choice of technology, preparation of

feasibility studies, preparation of economic surveys, installation, operation of machinery,

maintenance and marketing of products.

24. SIDO in collaboration with other stakeholders supported establishment of SME

association to empower the private sector. Some of those associations include Tanzania

Food Processors Association (TAFOPA), Tanzania Small Industries Organisation

(TASISO) and Vikundi vya Biashara Ndogo (VIBINDO). These associations have been

useful in involving the members in all issues related to advocacy as well as accessibility to

market, information, raw material, packaging and micro credit services.

2.3.2.2 Other Initiatives/Programmes:

25. Apart from SIDO, various institutions were established to support enterprise

development in Tanzania. These institutions cater for the whole enterprise sector including

SMEs. They include the Tanzania Industrial Research Development Organisation (TIRDO)

which supports local raw materials utilisaltion; Centre for Agricultural Mechanization Rural

Technology (CAMARTEC) which is involved in promotion of appropriate technology for

rural development; Tanzania Engineering and Manufacturing Design Organisation

(TEMDO) responsible for machine design; Tanzania Bureau of Standards (TBS) mandated

to promote standards; Board of External Trade (BET) which is instrumental in promotion

of exports mainly through trade fairs; and the Institute of Production Innovation (IPI) now

known as Technology Transfer Centre which is active in proto-type development and

promoting their commercialisation.

26. The Vocational Education and Training Act of 1994 provides the framework for

the vocational training system in Tanzania. This Act led to the formation of Vocational

Education Training Authority which has over 630 centres in the country offering training in

more 34 different trades. In 1999, the University of Dar-es-Salaam established

Entrepreneurship Development Centre within the Faculty of Commerce and

Management. The Centre provides consultancy and training in SME related issues.


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Furthermore the College of Business Education offers business training including

entrepreneurship development.

27. A number of initiatives have been designed by the Government to set up funding

mechanisms and schemes to address poverty and employment related problems through

promoting SMEs. Such funds include National Entrepreneurship Development Fund

(NEDF), Youth Development Fund (YDF) which is managed by the Ministry of Labour,

Youth Development and Sports and the Women Development Fund (WDF) that is

managed by the Ministry of Community Development and Women Affairs and Children.

Apart from these, there are other related programmes that were established through

Government/donor joint efforts including the Small Entrepreneurs Loan Facility (SELF),

National Income Generating Programme (NIGP), Presidential Trust Fund and Community

Development Trust Fund. Another initiative towards this direction has been the

establishment of the National Micro-finance Bank (NMB), meant to cater specifically for

micro enterprises.

28. In recent years, the country has witnessed the mushrooming of Non-

Government Organisations that are doing a commendable job in promoting SMEs. Most of

the NGOs are mainly involved in credit delivery, business training, providing general

consultancy, supporting market linkages and addressing gender and environmental

issues. However, most of the institutions supporting SMEs are rather weak, fragmented,

concentrated in urban areas and uncoordinated. This calls for the need to strengthen the

institutions supporting small and medium enterprises. Therefore the SME Development

Policy intends to support and strengthen these institutions.

2.4 Constraints faced by SMEs in Tanzania

29. Generally, SMEs are confronted with unique problems including heavy costs of

compliance resulting from their size. Other constraints include insufficient working

premises and limited access to finance. In addition, Business Development Services,

namely services related to entrepreneurship, business training, marketing, technology

development and information are underdeveloped and not readily available. On the other

hand, SME operators lack information as well as appreciation for such services and can

hardly afford to pay for the services. As a result, operators of the sector have rather low

skills. Also, there is no umbrella association for SMEs. At the same time, the institutions


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and associations supporting SMEs are weak, fragmented and uncoordinated partly due to

lack of clear guidance and policy for the development of the sector.


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CHAPTER 3

RATIONALE FOR SME DEVELOPMENT POLICY

30. In Tanzania the SME sector has been recognised as a significant sector in

employment creation, income generation, poverty alleviation and as a base for industrial

development. The sector is estimated to generate about a third of GDP, employs about

20% of the Tanzanian labour force and has greatest potential for further employment

generation. However, Tanzania has never had a specific policy focusing at the

development of SME sector. The different policies have various uncoordinated

programmes and interventions aimed at supporting the sector with limited impact. This

has resulted in a number of gaps leading to inability to address the core constraints

inhibiting the growth of the sector. This has made it difficult to exploit the existing

potentials for acceleration of SME development and limits its ability to exploit the exciting

potential of SMEs to accelerate growth.

31. Moreover, the SIDP does address the aspect of small industries but as a matter

of fact, the SME sector covers more economic activities than manufacturing alone. As

such strategies and programmes identified by SIDP have lopsided effect since they

neglected a greater part of SME activities in the areas of commerce, mining and services.

This requires an all-embracing policy in terms of covering the whole range of economic

activities being performed by SME broad-spectrum sector perspective. In addition, the

SMEs by nature of their scale require specific interventions to nurse them. In the

international perspective, economies that have strong SME sectors have being due to

having in place, clear guidance, focused visions and appropriate strategies arising from

well-designed SME policies.

32. Based on the importance of this sector and its potential, the SME Development

Policy has been designed to revitalise the sector to enable it to contribute to the objective

of the National Development Vision 2025. Furthermore, it aims at creating a mechanism

to put in place an effective institutional framework for its implementation, coordination,

monitoring and evaluation. Central to all these strategies is the ultimate objective of

attaining rural industrialisation in line with the Poverty Reduction Strategy and the Vision

2025. The policy aims at revolutionising the SME sector to make it a vibrant and


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sustainable agent of stimulation of growth of the economy. In recognition of this, various

interventions, including policies and programmes have been initiated to develop the sector.

Based on all these considerations it is of paramount important that a special tailored policy

to take into account the development of this sector is envisaged.


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CHAPTER 4

OBJECTIVES OF THE SME POLICY

4.1 Vision

33. The objective of the National Vision 2025 is to transform the predominantly

agricultural economy to a semi-industrialised one. The SME sector has a significant role

to contribute towards attaining this goal. It is on this basis that the Sustainable Industrial

Development Policy identified specific strategies targeting at stimulating the SME sector to

be able to play this crucial role.

34. The vision of the SME Development Policy is to have a vibrant and dynamic

SME sector that ensures effective utilisation of available resources to attain

accelerated and sustainable growth.

4.2 Mission

35. The mission of this Policy is to stimulate development and growth of SME

activities through improved infrastructure, enhanced service provision and creation

of conducive legal and institutional framework so as to achieve competitiveness.

4.3 Overall Objective

The overall objective of this policy is to foster job creation and income generation

through promoting the creation of new SMEs and improving the performance and

competitiveness of the existing ones to increase their participation and contribution

to the Tanzanian economy.

4.4 Scope of the Policy

36. The policy covers the following key areas:

i. Reviewing and reconsidering public policies and regulations that discriminate

against or hinder the start-up, survival, formalisation and growth of SMEs.

ii . Enhancing the growth of the sector.

III. Identifying and assigning clear roles of key actors.


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IV. Developing strategies that will facilitate provision of financial and non-

financial services to SMEs.

V. Developing and institutionalising public-private partnerships for SME sector

development.


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CHAPTER 5

POLICIES AND STRATEGIES FOR DEVELOPMENT OF THE SME SECTOR

37. An assessment of the SME sector has shown that it is facing constraints which

need to be addressed adequately through this policy. Given the importance of the sector

and the need to transform it to a vibrant and dynamic one, it is crucial to put in place

strategies that will facilitate the removal of those constraints so that it can attain the

desired vision and identified objectives. In the SME Development Policy strategies have

been identified focusing on areas which have maximum impact on the sector. The major

areas of focus include: creation of the enabling business environment, developing the

infrastructure, strengthening financial and non-financial services and establishing and

strengthening institutions supportive to SME development. In this policy, problems are

identified, Government statements are articulated and appropriate strategies are specified.

5.1 Legal and Regulatory Framework

38. Despite of various interventions aimed at improving the business environment in

Tanzania, the legal and regulatory framework is bureaucratic, costly and centralised.

These characteristics of the legal and regulatory environment affect all sizes of businesses

adversely. However, SMEs are further constrained in this environment in comparison tolarger businesses due to the disproportionately heavy costs of compliance arising from

their size. As a result most of informal enterprises have failed to formalise and micro

enterprises have been unable to grow and graduate into Small and Medium Enterprises.

39. The tax regime in Tanzania is also unfavorable for SMEs development. Taxes

are many, rather high and collected by various authorities including Tanzania Revenue

Authority and the Local Government Authorities. Furthermore, entrepreneurs are ignorant

of tax matters and the cost of complying with tax regulations is considered high. Whereas

taxation of businesses is a necessity for national economic development, the present tax

regime imposes a major burden on SMEs.


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Policy Statement:

The Government will enhance implementation of programmes aimed at

simplification and rationalisation of procedures and regulations so as to

encourage compliance and minimise transaction cost.

Strategies:

42. Strategies aimed at improving the legal and regulatory framework include:

i. Simplify business registration and licensing procedures.

ii . Simplify tax system and introduce tax incentives to nurse SMEs.

iii. Review Government Procurement procedures to facilitate SMEs

participation.

iv. Establish a window within the commercial court for handling SME business

disputes.

v. Train and sensitise SMEs on intellectual property rights.

5.2 Physical Infrastructure

43. The poor infrastructure in Tanzania including working premises, roads, cold rooms,

warehouses, power, water and communication adversely the development of the SMEs.

Even where these services are available, the supply is unreliable and costly. Serviced

land or business premises are in short supply in most of the cities and towns, especially for

industrial use. The very poor state of infrastructure makes it difficult to attract even local

investors to the rural areas where almost 80% of Tanzanians live. This has been an

obstacle in promotion of SMEs especially in rural areas.

Policy Statement:

The Government will continue to improve the physical infrastructures and provision

of utilities in collaboration with Local Authorities, private sector and development

partners.


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Strategies:

44. The following strategies are designed to address infrustructual requirements in

respect to SMEs:

i. Local Authorities to allocate and develop land for SMEs

ii . Develop industrial clusters and trade centres

iii. Identify and allocate underutilised public buildings to SMEs.

5.3 Business Development Services

5.3.1 Entrepreneurship Development

45. Tanzania is endowed with a rich natural resource base. Even then, with all these

resources Tanzania is still a least developed country. The challenge lies in the ability to

transform efficiently and effectively the resources into goods and services that can be

availed to the market at competitive prices. One of the major limiting factors is the lack of

entrepreneurs at different levels. Some of the traditions, perceptions and values have

tended to create a culture that is anti-entrepreneurial. Furthermore, past policies limited

individual entrepreneurship initiatives. In addition, the education system has tended to

create employment seekers rather than job creators.

Policy Statement:

The Government will promote entrepreneurship development through facilitating

improved access of SMEs to financial and non-financial services

Strategies:46 In order to overcome this situation, the following measures will be

undertaken:

i. Inculcate through education, training and other programmes values and

attitudes that are conducive to development of entrepreneurship.

ii. Review school curricula to accommodate entrepreneurship development.


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iii. Introduce entrepreneurial programmes in vocational and technical training.

iv. Facilitate entrepreneurship development programmes for selected target

groups/sectors e.g school leavers.

v. Facilitate capacity building in entrepreneurship development

5.3.2 Business Training

47. SME operators in Tanzania have rather low business skills and seem not to

appreciate the importance of business education. On the other hand, the quality of training

provided by existing business training institutions and costs involved has tended to be

unattractive and unaffordable to the potential beneficiaries.

Policy Statement:

The Government will enhance the capacity of institutions providing business

training to SMEs.

Strategies:

48. In order to improve the business skills of SME operators, the following strategies

will be pursued:

i. Embark on capacity building of business training institutions aimed at

improving quality of services provided

ii. Facilitate tailor-made business training programmes for start-ups and for

strengthening existing businesses.

5.3.3 Information

49. In this millennium information has become a prime mover of all economic

undertakings. However, the situation of SMEs in Tanzania is that of limited access to

information caused by lack of awareness on its importance and the prohibitive costs of

acquiring the same.


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Policy Statement:

The Government will facilitate and support programmes aimed at increased

access of information pertinent to the development of SMEs.

Strategies:

50. The measures to be undertaken include:

i. Set up of business centres so as to ensure that SME operators at all

levels have access to information at affordable costs.

ii. Support training on information technology e.g. E-commerce .

1. Establish a data bank for the SMEs including a national web-site for SMEs and a

directory of service providers.

iii. Conduct a census for SMEs

5.3.4 Technology

51. Technology advancement and transfer are important aspects for SMEs

development. SMEs have limited access to technology development partly because they

lack the relevant information. The problem is further compounded by the existence of

industrial support institutions which are weak and do operate in isolation without focusing

on the actual requirements of the SME sector. Furthermore, technologies available are

not disseminated to the potential clients. In addition, SMEs cannot afford the services

provided by the relevant institutions. As a result of the above, SMEs continue to hold on

poor and obsolete technologies.

Policy Statement:

The Government will facilitate acquisition and adaptation of technologies as

well as enhance networking between R&D Institutions and SMEs in a bid to

upgrade technologies so as to raise the productivity and competitiveness of

the sector.


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Strategies:

52. The following strategies have been designed to handle technological aspect of

SMEs.

i. Establish mechanism for enhancing networking between SMEs and

technology providers.

ii. Facilitate joint ventures aimed at enhancing technology upgrading and

transfer.

iii. Facilitate capacity building of Industrial Support Organisations (ISOs) and

other service providers.

iv. Facilitate establishment of incubators.

5.3.5. Marketing

53. Sustainability of a firm depends largely on its performance in the marketing.

Unfortunately, many enterprises are facing problems of marketing due to poor quality of

products, poor packaging, inadequate marketing skills and stiff competition.

54. Inadequate marketing services have been prohibiting SMEs to become

competitive in local and international markets.

Policy Statement:

The Government is committed to facilitating support programmes aimed at

improving SMEs access to market.

55. On marketing, the following strategies will be undertaken:

i. Promote business linkages between large and small enterprises.

ii. Strengthen marketing agencies and institutions that support SMEs.

iii. Create SMEs bulk provision systems through a cooperative mechanism.

iv. Facilitate SMEs participation in local and international markets through

trade fairs and missions.

v. Establish SMEs exhibition centres.

vi. Facilitate SMEs to meet standards


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vii. Facilitate training on trade issues i.e multilateral trading systems and

regional trading arrangements

viii. Facilitate SMEs benefit from government procurement needs and

activities

5.4 Access to Finance

56. The SME sector in Tanzania has limited access to finance due to the following

factors: the sector is perceived as a high risk one; inability of the SME operators to fulfill

the collateral requirements; most banks do not operate an SMEs financing window; some

of the banks operate in limited geographical areas; inexperience of Bank Staff in issues

related to Micro-finance; lack of a guarantee scheme to back up banks financing SMEs;

high cost of screening and administering small loans spread over big areas and inabilities

of borrowers to prepare and present applications that meet bank's requirements.

57. The current reforms have resulted in liberalisation of the financial sector to a

great extent. This has led to establishment of a number of banks including the Micro

Finance Bank, liberalisation of financial rates and establishment of a stock exchange

market. In spite of all these, the SME sector is facing a major constraint in accessing

finance. This limits their capacity to survive, increase capacity, upgrade its technologies

and even in many cases, expand their markets and improve management or raise

productivity and eventually increase incomes.

Policy Statement:

The Government will enhance financial reforms aimed at further liberalisation of the

financial sector and the creation of financial intermediaries to cater for SMEs

Strategies:

58. To take care of this concern the following strategies will be implemented:-


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o Promote transferring lessons and good practices from traditional

financing mechanisms into suitable financial products for financing SMEs

o Facilitate opening up of SME windows in financial Institutions.

o Promote innovative financial products for SMEs such as hire purchase

scheme, leasing, inventory financing, venture capital SMEs and, Saving and

Credit Schemes.

o Promote improving access of SMEs to bank financing through

simplification of procedures

o Mobilise resources and promote development of new financial institutions

for financing SMEs.

5.5 Institutional Framework for SMEs Development

59. The institutions supporting the SME sector are weak, fragmented, uncoordinated

and concentrated in urban areas. Currently, numerous stakeholders made up of

Government ministries and agencies, private sector associations, NGOs and development

partners are involved in the development of programmes aimed at supporting the SME

sector in Tanzania. Most of their programmes are ineffective and their efforts are

uncoordinated. Although the government has put in place a number of Industrial Support

Organisations, including the Small Industries Development Organisation (SIDO), these

institutions are ill equipped in terms of equipment, personnel and operational funds, and

therefore, unable to discharge their mandated responsibilities. Furthermore, it has been

established that government officials responsible for development of the sector do not

have adequate knowledge, skills and SME orientation to create the desired enabling

environment for the sector.

Policy Statement:

The Government will facilitate strengthening of institutions and

associations supporting the SME sector.

60. Strategies designed to improve the institutional framework include:

i. Support establishment and strengthening of Associations of SMEs

ii. Establish a forum for SMEs


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iii. Facilitate strengthening and networking of service providers of SMEs

iv. Strengthen Government capacity to coordinate monitor and evaluation of the

Policy

v. Enhance the knowledge and skills of relevant government officials at all

levels on SMEs development.

5.6 Rural Industrialisation:

61. Agriculture accounts for about 50% of the national income, 60% of

merchandise exports and is a source of livehoods of about 80% of Tanzanians. Despite

this importance, its performance over years has not been impressive. This has been

caused by the following major factors: inadequate access to extension services; lack of

improved farm inputs; poor infrastructure; lack of comprehensive market information; lack

of credit; multiple taxes and levies; dominance of low technologies; inadequate

processing capacities in the rural areas; poor or inadequate research and weak link

between extension services and research.

62. The Tanzania Development Vision 2025 emphasises the need to transform

the economy from a predominately agricultural one to a diversified semi-industrial

economy with a modern agricultural sector. Small and medium industries have a critical

role to play in attaining this goal due to the following factors: SME technologies tend to be

simple, affordable and manageable and thus appropriate for rural areas; SMEs can

process effectively locally available raw materials and thus add value. In addition, SMEs

provide backward and forward linkages, which maximise the multiplier effect to the rural

economy.

Policy Statement:

The Government will facilitate the establishment of manufacturing

enterprises in rural areas so as to add value to agro products

Strategies:

63. This policy has the following strategies to facilitate rural industrialisation

include: -


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i. Strengthen extension services aimed at promoting industrialisation through

SMEs.

ii . Facilitate the establishment of industrial clusters/business centres at

regional, district and ward levels

iii. Facilitate the transfer of technology to rural areas, including upgrading of

existing technologies.

iv. Support establishment of rural industrial cooperatives

5.7 Cross Cutting Issues:

5.7.1. Environmental Considerations:

64. Latest developments in environmental issues have tended to create limitations to

the development of SMEs in terms of legal requirements and complexities in compliance to

changing regulations. They demand environmentally friendly technologies that are

expensive, clear waste disposal techniques and systematised waste management.

Furthermore, environmental law and regulations require environmental impact assessment

and do impose penalties for non-compliancy to laid down regulations. All these require

resources, which are not within the reach of SMEs. This is more compounded by the

limited awareness of SME operators on the environmental issues.

Policy Statement:

The Government will ensure that environmental considerations are given

due emphasis in all SME development interventions


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Strategies:

65. Environment at the moment is a major consideration in all aspects of development.

To facilitate environmentally friendly SME development, the following strategies are

designed:-

i. Facilitate creation of awareness on environmental issues to SMEs and their

service providers.

ii . Facilitate simplification of environmental impact assessment procedures.

iii. Encourage proper waste management including recycling techniques.

iv. Facilitate production of technologies which apply renewable energy.

5.7.2 Gender and the Disadvantaged Groups

66. Women are a significant part of the Tanzanian labour force and as such any

meaningful development effort must mainstream women. Unfortunately, they have less

access to productive resources such as land, credit and education due to cultural barriers.

As such, it is clear that men and women stand on uneven ground and thus the need for

specific measures for promoting women entrepreneurship. The same applies to youth

and people with disabilities. Due to these facts there is a need to rectify the situation by

facilitating their involvement in the economic activities through participation in the SME

sector.

Policy Statement:

Government will ensure that gender mainstreaming is enhanced in all

initiatives pertaining to SME development

Strategies:

67. This policy focuses at encouraging women and other disadvantaged groups

participation in SME activities through the following strategies:

i. Facilitate SME service providers to design special programmes for women

and disadvantaged groups.

ii . Identify factors inhibiting women and other disadvantaged groups from going

into business and design programmes which will address those factors.


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5.7.3. HIV-AIDS

68. The HIV-AIDS pandemic is a threat to the whole world including Tanzania. It

affects the labour force in terms of supply, skills and productivity. It is estimated that an

increasing number of Tanzanias population is infected with the deadly HIV-AIDS disease.

Consequently, all sectors including SMEs are affected negatively.

Policy Statement:

The Government will continue to implement programmes that check the spread of

HIV-AIDS amongst SME operators

Strategies:

69. Strategies designed to check the spread of the epidemic and minimise its impact to

the SME sector include:

i. Create awareness on HIV/AIDS related matters amongst the SME

operators.

ii. Support potential vulnerable groups to engage in income generating

projects.

70. In conclusion, the SME development policy seeks to further the objectives of

Tanzania Development Vision 2025. The implementation of the SME Development policy

is based on the following basic principles: consensus-building through dialogue; active

participation of all key stakeholders; capacity building to ensure effective utilisation of all

factors of production and periodic review to identify bottlenecks in the implementation

process with a view to finding their solutions. Best practices of implementation will be

applied and will provide input to further refine the strategies outlined.


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CHAPTER 6

ROLES AND RESPONSIBILITIES UNDER THE SMEDEVELOPMENT POLICY

71. Effective implementation of any policy depends on clarity on assigning

responsibilities and roles to different stakeholders. This facilitates smooth

operationalisation of programmes and projects with clear demarcation of levels of

accountability. Since SMEs cut across institutional mandate of various government

ministries and executive agencies, local authorities, various private sector agencies,

different development partners and range of NGOs, coordination is of critical importance.

An environment and mechanisms conducive to participation and consultation are desirable

in various interventions aimed at implementing the policy as well as in facilitating its

effective monitoring and evaluation of impact. In this regard the roles of various

stakeholders is as follows:

6.1 Government

6.1.1 Developmental Role

72. The Governments main role is to create a conducive macroeconomic environment

that will allow SMEs to emerge, survive and grow. In addition, the government has the

responsibility of putting in place the requisite infrastructural facilities which will provide a

basic support for the growth of the sector. There is need to develop entrepreneurship

through education and training and fostering pro-active entrepreneurship attitude within the

civil service and local government service.

73. In the financial services sector, the Government will take measures that will reduce

the risks and transaction costs of lending to increase competition in the financial sector

and strengthen the capabilities to serve small and medium enterprises. The government

will provide seed capital and other financial resources for SMEs. Local government

authorities will allocate and develop areas for use of SMEs.

74. In the non-financial services sector, major role of the Government will be to

encourage and support market development to facilitate greater demand and supply of

BDS. The government will support the establishment and strengthening of extension

services for the SMEs.


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75. The Government will promote consultations and partnership with the private

sector. This will be achieved by ensuring appropriate representation of SME relevant

issues on the agenda of the Tanzania National Business Council.

6.1.2. Supervisory role of the Ministry of Industry and Trade

76. The Ministry of Industry and Trade (MIT) shall have the overall responsibility for

coordinating the implementation of the SME Development Policy. MIT will function as the

secretariat of the SME Forum and publish the Annual SME Report that will include

information on the status of the SME sector. The Ministry will establish a data bank to

function as research and information clearing house, interconnected with major

stakeholders. The Ministry will also coordinate the activities of all SME stakeholders and

will be responsible for organising monitoring and evaluation of implementation of the SME

Development Policy. MIT will continue to assist SMEs produce high quality goods both for

domestic and external markets. Special attention will be focused on packaging which is a

critical marketing aide.

6.2 Private Sector

77. The private sector has assumed the leading role in carrying out direct investment in

industries. Given this role they are expected to be the major investor in the SME sector.

They will have to mobilise resources, implement projects, manage operations and in so

doing ensure that the policy is put into effective implementation. Furthermore, it will,

through their constituencies provide BDS which will foster the creation of a competitive

SME sector. Through their associations they will strengthen the representation of SMEs to

promote advocacy in the respective dialogue with the government.

6.3. Non Governmental Organisations (NGOs)

78. NGOs intervention in supporting SMES in Tanzania range from institutional

capacity building, direct provision of financial and non-financial services to infrastructure

development.


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6.4 Development Partners

79. Development partners of Tanzania are intensively involved in all key areas of

intervention that are covered in this policy. They provide finance for micro finance

operations, physical infrastructures, capacity-building of the SME institutions and various

activities intended to create a favourable environment for the SME development.

Development partners are expected to design and implement sustainable interventions

especially in the financial and non-financial services for the SMEs in compliance with the

principles stated in this policy.


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CHAPTER 7

POLICY MONITORING AND EVALUATION

80. In implementing the various strategies mentioned in this policy, there will be specific

programmes to be put in place and implemented by various stakeholders. These

programmes are to be implemented within 3 to 5 years. The Ministry of Industry and

Trade, being the focal institution responsible for the coordination of the policy

implementation, will collect, compile and analyse information on the implementation of the

various programmes. All stakeholders will be relied upon to furnish the Ministry with the

relevant information. This information will then be processed so as to compare the various

benchmarks with actual implementation of the programmes. The processed information

will be published in a document which will be discussed at a forum of SME stakeholders.

As such, this monitoring and evaluation mechanism will be a major policy instrument.

81. The implementation programmes are detailed in terms of activities with specific

timeframe as perannex 1. The activities will be benchmarked so as to form the basis

for assessment of the implementation of the SME Development Policy.


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Annex 1

IMPLEMENTATION OF NATIONAL SME DEVELOPMENT POLICY

A strategy for SME development policy has been formulated in the form of priority

programmes and projects that cover up to 5 years. Policy makers expect that through the

participatory and consultative process built into this policy statement, lessons learnt during

the first 5 years of implementation will enable stakeholders to continuously update the

portfolio of priority programmes and projects to be adopted in the future periods to steer

towards the overall objective of the SME Development Policy: a Tanzanian SME sector

that contributes increasingly to equitable economic growth, income and

employment generation.

PRIORITY PROGRAMMES AND PROJECTS

OBJECTIVES AND ACTIVITIES TIMEFRAME

Objective 1: Enabling Legal and Regulatory

1.1 Simplify business registration and licensing procedures. 2003 - 2006

1.2 Simplify tax system and introduce tax incentives to nurse SMEs. 2003 2004

1.32.1.1.

Review Government Procurement procedures to facilitate SMEsparticipation.

2003 2006

1.4 Establishment of a window within the commercial court for handling SMEdisputes.

2003 2006

1.5 Train and sensitise SMEs on property rights. 2003 2006

Objective 2: Improved Access to Physical Infrastructure and Work Places

2.1 Local Authorities to allocate and develop land for SMEs2003 2008


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2.2 Local Authorities to allocate and develop land for SMEsDevelop industrial clusters and trade centres

2003 2008

2.3 Identify and allocate under-utilised public buildings to SMEs. 2003 2008

Objective 3: Strengthened Entrepreneurial Culture and Markets for Sustainable Business D

3.1 Entrepreneurship Development

3.1.

1

Inculcate through education, training and other programmes, valueattitudes that are conducive to development of entrepreneurship. 2003 2008

3.1.2

Review school curricula to accommodate entrepreneurship development. 2003 2004

3.1.3

Introduce entrepreneurial programmes in vocational and technicaltraining.

2003 2004

3.1.

4

Facilitate entrepreneurship development programmes for selected target

groups/sectors e.g school leavers.

2003 2008

3.2 Business Training

3.2.1

Embark on capacity building of business training institutions aimed atimproving quality of services provided

2003 2008

3.2.2

Facilitate tailor-made business training programmes for start-ups and forstrengthening existing businesses.

2003 2008

3.3 Information Services

3.3.1

Set up of business centres for SMEs. 2003 2006

3.3.

2

Support training on information technology e.g. E-commerce. 2003 2004

3.3.3

Establish a data bank for the SMEs including a national web site for SMEsand a directory of service providers.

2003 2006

3.3.4

Conduct a census for SMEs 2003-2006

3.4 Technology and Environment


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3.4.1

Establish mechanism for enhancing linkages between SMEs andtechnology providers.

2003 2006

3.4.

2

Facilitate joint ventures aimed at enhancing technology upgrading and

transfer.

2003 2008

3.4.

3

Implement capacity building of Industrial Support Organisations (ISOs)

and other service providers.

2003 2006

3.4.

4

Promote incubators . 2003 2008

3.5 SME Market Access

3.5.1

Promote business linkages between large and small enterprises 2003 2006

3.5.2

Strengthen marketing agencies and institutions that support SMEs. 2003 2004

3.5.3

Create SMEs bulk provision systems through a cooperative mechanism. 2003 - 2004

3.5.4

Facilitate SMEs to participate in local and international markets throughtrade fairs and missions.

2003 - 2008

3.5.5

Facilitate SMEs to meet standards 2003-2008

3.5.6 Facilitate training on trade issues i.e multilateral trading systems andregional trading arrangements 2003-2008

Objective 4: Improved SME Access to Finance

4.1 Promote transferring good practice models and lessons learned intraditional financing mechanisms into modern financial products for SMEs

2003 - 2008

4.2 Facilitate the establishment of SME windows within existing banks andencourage simplification of procedures.

2003 - 2006

4.3 Promote innovative financial products for SMEs such as hire purchasescheme, leasing, inventory financing, venture capital SMEs 2003 - 2008

4.4 Facilitate simplification of procedures of financial institutions 2003-20084.5 Mobilise resources and promote establishment of new financial

institutions for SME development

2003-2008

Objective 5: Strengthened stakeholder capacities to achieve effective implementation of SMand interventions


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5.1 Support establishment and strengthening of Associations of SMEs. 2003 - 2006

5.2 Establish a forum for SMEs 2003 - 2006

5.3 Facilitate strengthening and networking of service providers of SMEs 2003 - 2006

5.4 Strengthen Government capacity to coordinate monitor and evaluatePolicy

2003 - 2006

5.5 Enhance the knowledge and skills of relevant government officials at alllevels on SMEs development.

2003 - 2006

Objective 6: Enhanced Rural Industrialisation

6.1 Strengthen extension services aimed at promoting rural industrialisation

through SMEs.

2003 - 2008

6.2 Facilitate the establishment of industrial clusters/business centres at

regional, district and ward levels

2003 - 2006

6.3 Facilitate the transfer of technology to rural areas, including upgrading ofexisting technologies.

2003 - 2006

6.4 Support establishment of rural industrial cooperatives. 2003 - 2006

OBJECTIVE 7: CROSS CUTTING ISSUES

7.1 ENVIRONMENTAL CONSIDERATIONS

7.1.

1

Facilitate creation of awareness on environmental issues to SMEs and

their service providers.

2003 - 2006

7.1.2

Facilitate simplification of environmental impact assessment procedures. 2003 - 2006

7.1.3

Encourage proper waste management including recycling techniques. 2003 - 2006

7.1.4

Facilitate production of technologies which apply renewable energy. 2003 - 2006

7.2 GENDER AND DISADVANTAGED GROUPS


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7.2.1

Facilitate SME service providers to design special programmes for womenentrepreneurs and disadvantaged groups.

2003 - 2006

7.2.

2

Identify factors inhibiting women and the disadvantaged groups from

going into business and design programmes which will address thosefactors.

2003 - 2006

7.3 HIV-AIDS

7.3.

1

Create awareness on HIV/AIDS related matters amongst the SME

operators.

2003 - 2008

7.3.2

Support potential vulnerable groups to engage in income generatingprojects.

2004 - 2008

small and medium entreprises policy

Documents